Studying heterogeneity in the subsistence consumer market: A context-sensitive approach

Abstract

This multimethod study develops a context-sensitive approach to subsistence consumer segmentation as advocated in the international market segmentation literature. Building on the theory of consumption values, the authors conduct multisited rapid ethnography research to collect primary data from urban subsistence consumers in South Africa and India who were presented with a simulated product choice situation. The authors convert the data into quantifiable segmentation variables for further analysis. This approach is particularly useful in subsistence consumer markets that are characterized by a dearth of quantifiable consumer data. The study reveals four distinct subsegments—Family-Oriented Workers, Low-Skilled Price-Sensitives, Young Performers, and Conscious Conservatives—that differ significantly in education level, number of children, age, consumption values, and purchase behavior. A detailed discussion of the context-sensitive segmentation approach applied in this study enables scholars and practitioners to deploy and adapt it to different environments and requirements.